Trump abruptly approves Nvidia AI chip exports to China… A turning point in the US-China tech supremacy race

Source: BlockMedia Original Title: Trump Approves Surprise Nvidia AI Chip Exports to China…Will This Mark a Turning Point in Tech Dominance?(Comprehensive) Original Link: https://www.blockmedia.co.kr/archives/1016891 President Donald Trump has approved the export of Nvidia’s high-performance artificial intelligence (AI) semiconductor, the H200 chip, to China, marking a significant turning point in U.S.-China technology control policy. This move represents a retreat from the previous stance of strictly limiting AI chip exports and has sparked mixed reactions in American political and industrial circles.

Background of the Policy Shift

President Trump announced that the Department of Commerce has authorized Nvidia’s sale of H200 chips to China and mentioned that similar opportunities will be offered to other semiconductor companies such as AMD and Intel. He also stated that a portion of the revenue from chip sales would be allocated to the U.S. government. Industry experts have pointed out that the government revenue sharing related to export permits could conflict with current U.S. law.

Nvidia CEO’s Lobbying Success and Washington’s Concerns

This decision is seen as a strategic victory for Nvidia CEO Jensen Huang, who has lobbied the White House and Department of Commerce for months to relax export restrictions. Positive signals were detected after his meeting with President Trump last week. At that time, President Trump personally praised Huang as “a person who has achieved remarkable results.”

However, this policy shift has drawn criticism in Washington. Bipartisan lawmakers have expressed concerns that exporting AI technology to China could pose security threats and have jointly introduced bipartisan legislation. Some senators voiced strong objections to the Trump administration’s decision, stating that “national security should not be a matter of negotiation.”

Nvidia has stated that it will only supply H200 chips to commercial customers who pass pre-screening by the Department of Commerce. A Nvidia spokesperson said, “This decision will contribute to the creation of high-paying jobs in the U.S. and maintain the competitiveness of the semiconductor industry,” welcoming President Trump’s decision.

China’s Response and Push for Technological Self-Sufficiency

It remains uncertain whether China will actually purchase the H200 chips. Previously, Beijing restricted the use of the H20 chip, which was developed for the Chinese market, citing security concerns. There are suggestions that the H200 chip could face similar restrictions.

Since the U.S. export restrictions, China has accelerated technological self-sufficiency and is ramping up development of its own AI semiconductors. Some predict that, even if exports are allowed, demand might be limited by the Chinese government’s policy direction.

Trends in U.S.-China Tech Diplomacy

President Trump is stepping up diplomatic efforts to ease the U.S.-China technology dispute, including the approval of chip sales. Provisional agreements have been reached, such as mutual freezing of technology export restrictions, resumption of rare earth exports, and expansion of U.S. soybean imports; Trump has also accepted an invitation to visit China next April.

As the U.S.-China competition for technological supremacy continues, attention is focused on how this shift in export policy will impact the future economic and diplomatic relations between the two countries as well as the global AI industry landscape.